Glittering Gains: Gem & Jewellery Sales Soar Amid Price Surge

The demand for gems and jewellery during Dhanteras and Diwali is expected to remain robust in India despite rising prices. Sales could exceed Rs 30,000 crore, bolstered by consumers viewing gold as a reliable asset amid global uncertainties and geopolitical factors. Silver's popularity is also increasing due to industrial demand.

In India, this year's Dhanteras and Diwali festivals are expected to see strong demand for gems and jewellery, with sales possibly surpassing Rs 30,000 crore, even as prices rise. Industry experts cite consumers' perception of gold as a trustworthy asset and growing interest in silver as key factors.

Ashok Bengani, President of the Ankurhati Gems and Jewellery Manufacturers Welfare Association, emphasized the need for reduced import duties to ensure market sustainability. He urged the Finance Ministry for a 6% cut on gold imports to stimulate growth. This festive season, sales are forecasted to achieve record figures despite volume decreases.

Motilal Oswal Financial Services Ltd forecasts silver prices may eclipse gold, driven by industrial demand and safe-haven investments. The company also highlights future targets for gold, buoyed by global market uncertainties and geopolitical tensions, strengthening optimism for Diwali sales.

(With inputs from agencies.)